This invention relates to communication in a distributed item tracking system. This invention can serve as an underlying communication infrastructure for a number of higher-level applications including supply chain management (SCM) software.
SCM software such as the SCM solutions provided by SAP AG of Walldorf, Germany, enable a user to manage materials, information, and finances as they move in a process from a supplier to a manufacturer to a wholesaler to a retailer. The SCM software generally implements algorithms for determining the best means to fill an order and also includes databases for tracking the physical status of the goods, the management of materials, and financial information.
Inventory management is a component of most SCM systems. Inventory management enables suppliers to keep track of how much inventory they have and how much inventory they have distributed to particular retailers. Periodically, the retailer reports to the supplier the current inventory level of the store. Based on the report, the supplier determines whether the store inventory needs to be replenished.
Typically, suppliers and retailers develop a planning schedule of how often the retailers will report to the supplier. For example, every Thursday, the retailer reports the current inventory level of the store and replenishment planning occurs. On Friday, any new inventory arrives at the store in time for the weekend shoppers.